Foreign Direct Investment | International Economics

Dear students international economics number india’s balance of payments position okay classical discussion so payments analysis location framework the rate of interest we’re going to realize rate of interest affecting under the speculation profitability cost of production economic conditions government policies political factors it occurs when a firm invest

Directly in new facilities to produce and or market in a foreign country okay of foreign facilities for indirect investment occurs when a firm invest directly in new facilities to provide produce and market in a foreign country foreign okay the firm becomes a multinational enterprises foreign okay the flow of foreign direct investment refers to the amount of

Foreign direct investment that are taken over a given period time period foreign of foreign direct investment the stock of foreign direct investment refers to the total accumulated value of foreign owned assets at a given time okay stroke of hefty anonymous total accumulated value of foreign owned assets then fdi can be in the form of grain field investments and

Brownfield investments and then greenfield investments in mourinho the establishment of a holy new operation in a foreign country foreign government entity purchases or leases existing production facilities to launch a new production activity production facility uh government investment this is one strategy used in foreign direct investment then how does foreign

Direct investment benefit the host country uniformed investment host country benefiting benefits from there are main benefits of inward fdi or a host country that is a resource transfer effects fda brings capital technology and management resources okay a resource transfer to achieve current effects on competition and economic growth greenfield investments

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Increases the level of competition in the market other existing farms competition then driving down prices and improving the welfare of the consumers then uh it can lead to increased productivity growth product and process innovations and in the transition to privatization uh that is when state-owned firms are told in sold into foreign investors either government

Ownership okay multinational then brings foreign executives into the country with sufficient knowledge of macroeconomic global and local situations there will be foreign executives in a foreign uh investments multinational macroeconomic awareness economic situations in accordance okay that is uh the another effect then what are the what are the costs of foreign

Direct investment to the host country effect of fda on the competition within the host nation okay competition down address effects subsidiaries of foreign multinational enterprises may have greater economic power than the indigenous competitors because they may be part of larger international organization okay multinational enterprises foreign a substantial

Number of inputs from abroad there is a debate on the current account on the host country’s balance of payments up to the balance of payments foreign a perceived loss of national sovereignty decisions that affect the host country will be made by a foreign parent that has no real commitment to host country and over which the host country’s government then how

Does government influence foreign insurance programs to cover major type of foreign investment risk they want a government can restrict outward fda good manipulate tax rules or outright prohibited foreign direct investment etc the next where another government can encourage inward fda and they bought the new rash for indirect investments offer incentives to

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Foreign employment effects the fda can capture fdif away from other potential host countries governments can restrict inward fps without okay how do international institutions influence fda international institutions indiana foreign direct investment in a influence in oklahoma until the 1990s there was no consistent involvement by multinational institutions in

The governing of fda today world trade organization is changing this by trying to establish universal set of rules descend to promote the liberalization of 50 okay is changing this by trying to establish universal set of rules okay until the liberalization policies globalization takes policies foreign okay that is all about today’s class thank you

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Foreign Direct Investment | International Economics By Rajesh Nellikurussi